My SOA - thoughts please...

Sandgrownun

Yes 1447 to 789 whilst on mat leave. We have though about dp leaving work but his is one with career progression based on experience and mine (nurse) is the same level if I leave and go back, and of course I can take a year and keep my job.

I was thinking bankruptcy and have prepared for this but just wanted to see whether there was any options from you clever people x

exarmydreamer

If you hand the keys back, you will find the negative equity will be more than £35K. As they will sell for what ever it makes, plus they will load on charges. Might be worth going around the estate agents, they normally know local Buy to let landlords in the area, who are looking for a cheap purchase. You would find by doing this you will not be charged loads of charges from the mortgagees.

Why not advertise also in the local paper for a buy to let landlord or even send it to auction with a reserve. You would still pay commission out of the sale price but it won't be anywhere near the charges you will have to pay plus the negative equity.

Well done for putting your revised SOA, up. I also second the other posters with their advice.

Sandgrownun

I've thought of them, but my worry is I can't Afford to cover the mortgage while selling, also I have no spare cash for all the fees associated with selling, that's why I was initially thinking give the keys back and deal with the consequences.

Basically I'm wary of throwing good money after bad which I've been doing for the past 7 years! I'm I am going go bankrupt I need £700 don't I? I'd rather avoid of course but I'm not as scared as I was now I've read about the process.

Sandgrownun

Either way my credit rating is shot and I've possibly ruined my family financially for the next decade!

closed

move back into the house, then you don't have to pay 35k and save on rent and other costs - live frugally (cars, food, cleaning products, clothes, holidays, emergency fund) for 3 years, pay off your debts highest apr first, don't buy anything on credit that you can't clear at the end of the month, and save up towards the 35k, possibly do low cost improvements, and hope the market recovers, then you will be in a position to move on.

HappyMJ

Sandgrownun wrote: »

Either way my credit rating is shot and I've possibly ruined my family financially for the next decade!

Just 6 years...and just your own finances. BR spending allowances are quite generous so you will have enough money to spend on your family without living in poverty. Try making another SOA without the mortgage and secured loan payments on it and using your lower income and see how much is spare to make payments with.

Handing keys back is never a good idea. You will always get more for your property if you market it yourself rather than let the mortgage company sell it with no reserve at auction.

exarmydreamer

Ok, You have to go with your own gut feeling but have you checked whether it will effect your job. Some jobs do not allow their employees to go bankrupt, might be worth checking and make an appointment with the CAB. I believe they will be able to help with paperwork and advice on going bankrupt. I think you have the right figure there and it is only a quick visit to finalize. Although I can't offer experience of procedures because I've never been through it.

At the end of the day, if it gives you less stress and you can live from a basic account and budget better without this over your head then it might be your best decision. Good Luck

exarmydreamer

closed wrote: »

move back into the house, then you don't have to pay 35k and save on rent and other costs - live frugally (cars, food, cleaning products, clothes, holidays, emergency fund) for 3 years, pay off your debts highest apr first, don't buy anything on credit that you can't clear at the end of the month, and save up towards the 35k, possibly do low cost improvements, and hope the market recovers, then you will be in a position to move on.

The OP, started a thread yesterday, and explains the reason's for not moving back in. From this thread, if you haven't seen the other one, it comes across as confusing but OP has looked and answered these points. I asked similar myself yesterday on other thread.:)

Sandgrownun

HappyMJ wrote: »

Just 6 years...and just your own finances. BR spending allowances are quite generous so you will have enough money to spend on your family without living in poverty. Try making another SOA without the mortgage and secured loan payments on it and using your lower income and see how much is spare to make payments with.

Handing keys back is never a good idea. You will always get more for your property if you market it yourself rather than let the mortgage company sell it with no reserve at auction.

Thanks, but if going BR does it matter what price I get? Surely it's in the interest of NRAM to get the best price? I'm not being in unresponsible just wondering whether its worth the stress of selling the house whilst heavily pregnant/with newborn?

exarmydreamer wrote: »

Ok, You have to go with your own gut feeling but have you checked whether it will effect your job. Some jobs do not allow their employees to go bankrupt, might be worth checking and make an appointment with the CAB. I believe they will be able to help with paperwork and advice on going bankrupt. I think you have the right figure there and it is only a quick visit to finalize. Although I can't offer experience of procedures because I've never been through it.

At the end of the day, if it gives you less stress and you can live from a basic account and budget better without this over your head then it might be your best decision. Good Luck

Thank you. I have a phone interview with step change tomorrow, will they do the same?

exarmydreamer wrote: »

The OP, started a thread yesterday, and explains the reason's for not moving back in. From this thread, if you haven't seen the other one, it comes across as confusing but OP has looked and answered these points. I asked similar myself yesterday on other thread.:)

Thanks for remembering me and explaining x

closed

The reason being that it's small?